Private Mortgage

Private mortgages come from individual investors or pooled mortgage investment corporations (MICs), not regulated banks. Private lenders look primarily at the property and your exit strategy — they care less about credit score, income documentation, or stress testing. Rates are significantly higher than A or B Lender rates (often 8–12%+) and the loans are typically interest-only, 1- to 2-year terms intended as a short-term solution. Because most private lenders don't pay a commission, the borrower pays a broker fee on top — typically 1–3% of the mortgage amount, disclosed in writing before signing. Private mortgages are appropriate for short-term bridge situations: cleaning up credit, selling a non-conforming property, business owners between tax cycles, or homeowners avoiding power-of-sale. They are not a long-term solution; the exit plan must be clear when you sign.